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tv   Mad Money  CNBC  August 26, 2009 11:00pm-12:00am EDT

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welcome to cramer, america. other people want to make friends. my job to entertain. educate. call me, 1-800-743-cnbc. one of the biggest bulls in the market. that's right! one of the bullish, roaring raging bulls, the man who called the exact bottom, a once in a generation looks my friend, doug cass. i've mentioned him many times on the show. he called a top today, that's right, a top in the market. he said this is it. said we had it. an incredibly bearish piece on the street.com, where i'm chairman. just a second. the cameraman caught that one with the head. the article took my breath away.
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kass said the markets peaked for the year. what is it he says we should be doing? what does he say? sell, sem, sell, sell, sell, sell, sell! >> sell with power! why? among many other points he ticked off, kass says sentiment's too bullish, too many people like the market. the earnings are all made with cost cuts and firings and not real growth. the housing recovery, which you know i have bet the farm on he thinks will be muted. the consumer's still borrowing too much. and, of course, the one that everybody's talking about, the deficit is too big. he's calling for the fabled w, the double dip, where the economy takes another leg down from here before the next climb. and he wants you to sell. sell ahead of the collapse he sees coming. so what was my reaction?
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whenever i hear a view that differs from my view of the market, and i have been a bull occasionally doing the land of a thousand dances bull, i don't dismiss it. i don't shrug it off. in fact, i do the opposite, i devour it, closely read it, approach it rigorously. i have to tell you, only fools just say, look, i have my own view. don't bother me with yours. that's what perma bulls or pe perma bears do. and neither stance is going to make you any money over the long term or, of course, at any important junctions in the market. sometimes the facts change and you have to adjust. sometimes the prices change, and you have to adjust. but most of all, when the guy who called the exact bottom spx 666, who helped me tell you it
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was time to start putting money back into the market, some 3,000 dow jones points ago, you better believe that i respect that call. if i don't automatically heed it. kass in thestreet.com piece thinks wefr overshot back in march and now we're overshooting on the up side at the end of august. everyone who wants to buy is already in. that's what you have to think when you hear that there are so many bulls and the sentiment number, something like 50% bulls, which is historically an area i don't like. now, we may not have the ammo or the data -- [ gunfire ]. -- to take us much higher than here. if anything kass says -- of course, i'm choking. that would be the raisin cookie i had right before i start. we'll cut it out in post production. kass says the next raft of data can sink us. but here's the way i look at it, are we done going up?
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when i got bullish with the dow in the 6,000s and the s&p in the 600s, i said i didn't think the market could get back to where it was when i told you to get out. back at dow 10,300. and at the close we're still some 800 points from that level. i am sticking by that view. however, unlike kass, i see many, many good things happening. i like to look at the regional federal reserve reports. that's my equivalent of porn. and they have almost all to a region said things are getting better, and i know porn when i see it. well, it should be of no surprise to you, everyone now knows that the housing market's bottom. stop it with the foreclosure scares already! whatever inventories out there, anything that's worth anything
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at all is being bought, foreclosed unfortunate. it's being snapped up like it never stopped. i have never seen housing this good, courtesy low rates and affordability. consumer confidence, we got numbers yesterday. up nicely. auto inventories are much lower than we thought because of that terrific cash for clunkers program. ford showing an upside surprise. there's not much inflation as gold tells us, even though the most etf buying of gold happened yesterday ever. you must never forget how important this gold data is, because if it started showing inflation, well, that can kill any market. the massive job cuts, the one that's have scared you and me, not just about our money but our lives, they seem to be finished. the big banks are doing well, turning the corner. and most important -- ben bernanke is back. that he's bigger than ever. i trust him.
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i trust what he's going to do. you should do. put simply, things are better, better than we thought. now here's the problem -- how many of those 3,000 points that we have advanced are because of this good news that i just laid out? and how many of them are because we simply should never have been so low in the first place? how much of this market is, to use some wall street gibberish, priced in or discounted in the rally? and the answer is a lot of it. unlike doug kass, unlike most people, i do not subscribe to the notion that we are some sort of important level. i just don't think that this is anything but business as usual. where we build up a lot of optimism, and then you know what happens, we get clocked for 3% to 5% crunching, right? like the last two times. and then we start all over again. that means as we get closer to dow 10,000, a level that i don't think we'll breach, i just can't
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like the market as much as i do at 9,000 or dow 8,000, unless we get all sorts of positive new information, gives us a reason to power higher. the market's gone from being too cheap to too expensive. without more data changing the underlying economic picture. but it's just not dangerous, okay. it's not dangerous. this is not happening. [ alarms ] there's no reason to panic. there's no reason to sell, sell, sell, everything wholesale. what do i want? i would love to see earnings coming from the top line, the revenue line, and not just the bottom line. in other words, i would like to see earnings come from something else other than firings, like maybe better revenues. i do want to see the auto and back-to-school sales, even though i'm bullish about them. i want to see if they're as good as the home sales. i think we will. but above everything else, i want to see job creation. you know what this is right here?
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no, not the cookie dough from last night that went over. right here. this is my achilles' heel. job creation is this market's achilles' heel. this area right here. not the acl, which is fine. the achilles' heel. we cannot get a major move from these levels without hirings, not firings. if we don't get that, we're going to hit the roof and then come back down. the roof being dow 10,000. most importantly, though, even without job growth, we're not going to visit that dow 6,500 floor. there's just too much good stuff happening. we're about to go into a month, september, that has always been unkind to the bulls. i am sure if you haven't already you will hear the equivalent of sell in may and go away when it comes to september. that bromide, which doesn't even rhyme this time, was terrible advice last spring, just terrible. and you know i didn't add advise it. i said buy in may and stab long. i like something less sweeping for september and more common sensible.
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got big profits? got big profits when you have stocks that are up huge, which i do for my charitable trust, which you can watch, you have to do what i'm doing. take something off the table do it tomorrow, make some sales, take some profits. get ready for that 3% to 5% decline that i think can be on the horizon. as i said to one of my colleagues today who asked me what to do with a couple of bank stocks, come on, man, no one ever got hurt taking a profit. raise just enough cash so you can buy the stocks made cheaper, maybe too cheap, by the next dive. we always have to expect that dip after a big run. promise me you'll do it. promise me you'll be ready. again, things are better, much better even. they just aren't great. and we need things to be great to get north of dow 10,300. however, we need things to turn real bad for us to go back to dow 8,000, and there's just not enough bad to trigger that kind of sell-off! [ gunfire ]
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i am way more optimistic than that. here's the bottom line -- i have to stress to you that it's business as usual. we had a big bull run, and that always means in cramerica that you take some profits, you take something off the table. as my late mother always said when i pressed it at the blackjack tables, take some off. go buy a nice sweater. things have gotten better but the markets also moved higher and we just don't have enough positives to go much further. when we get this close to the ceiling, the risk reward is not in your favor. so wait for the garden variety at 3% to 5%. and then you know what you do? you start to buy, buy, buy all over again! let's go to ivan in texas. don't tell ivan we're going to oklahoma, no matter what. ivan? >> caller: hi, jim, here's a great, big texas hoola boo-yah to you. >> an hola boo-yah. i'll take that. just don't mention, ivan, that
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we're going to the university of oklahoma at the ends of october. >> caller: all right, jim. i was listening to the j.p. penny second quarter earnings conference call and they mentioned about $300 million in pension expense in 2009, based on their losses in 2008. this works out to about $1 a share less per earnings. >> i know. >> caller: should i add this $1 a share back in the earnings to see how jcpenney is really doing this year? >> i had the same problem with sears, which you know is struggling. when i looked at the pension expense and tried to figure out 50 was one time only. i said, wait a second. if the stock market is going up, i don't know what they have in their pension, but it's got to be better than it was. the answer is you should care about it but you should care less about it than you should have at dow 6,000. jcpenney mike goldman is trying. i'm going with mike, the stock's too cheap. are we done going up? not necessarily, but, again, i think it's business as usual. after a big run, no one ever got hurt taking a profit. "mad money" will be right back.
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coming up -- a week-long competition just got bigger. cramer decides if this dock has what it takes to be crowned discount king. plus, as we continue to explore for profits in nat gas, kramer goes head to head with petroleum's ceo to see if his stock has the power to fuel the portfolio on the executive decision. later -- lightning strikes. cramer goes electric, taking all of your calls in a spine-chilling overcharged lightning round. all coming up on "mad money." some people buy a car based on the deal they get.
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here's a quandary. i've been astonished by the
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ability of natural gas stocks to soar ever higher, even as the price of the underlying commodity has been pounded, pounded into the ground. you'd think the producers would be at multi-year lows, or at least 52-week lows. with natural gas prices touching where they were seven years ago, seven-year low. but instead of stocks have been ramping. i've said i think the action is a sign that washington will finally embrace this cleaner, greener, much cheaper fossil fuel. instead of schizophrenicy pushing pristine but impractical energy sources like wind and solar, right at the same time favoring the dirtiest fuel around, coal, betting somehow they can make it cleaner. and maybe there's even more to it than that, why with prices so low are natural gas companies drilling more?
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they should be drilling less, unless they expect the commodity to come back, that is. take one of my favorites, petroleum, upl, which just reported a very solid quarter earlier this month, earning 52 cents a share and beating the street's earning expectations by 6 cents. i like this company because it's one of the lowest-cost producers out there and getting even better. as its costs fell by a miraculous 18% from the previous quarter, ultra produced 44.5 billion cubic feet of natural gas, slightly above its forecast. although it left full-year production guidance the same, predicting an 18% to 22% increase in production compared to 2008. the company had cut its drilling budget by $50 million the previous quarter but then it did a u-turn and increased its drilling budget by $65 million. ultra's also ramping its drilling in the marcelas shell i talked about, the one in the western part of pennsylvania, and some in the central, where it plans to drill 35 instead of 23 wells it originally planned. now it's taking on some debt here.
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it's bring its total debt to 764 million. that worries me a little. because it wants to push in sell-offs. you don't do that when you expect things to get worse. you got to know something. some of the improvement in this company is specific. ultra got permission from the government to drill in the pine dale field. we talked about that many times. that's year-around drilling but there were animals in the way. that shortens the time it takes to move rigs from one to the next. upl also hedge d so well run thy realized prices for the quarter were up $5.04. remember, this stuff is like at $2.80 or nearly twice the market price. for 2010, it's a hedged 51% of its production at 550 and for 2011, about 32% of the production is hedged at $5.56. still, this is not about one natural gas company executing well. there's got to be a bigger story here. don't take it from me. let's go to a man who called it
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straight the whole way the show began. thank you very much and welcome to "mad money." >> thank you very much, jim. i appreciate visiting with you. >> you just executed and executed and executed. but can you bring costs down to where you can make money when natural gas is under $3? >> yes, jim, i think ultra's probably the only company in the u.s. today that can make money at sub $3 gas prices. i think you saw the second quarter of 2009 all in costs were about $2.43. so even at a $3 gas price, we have earnings. our cash flow all in cash costs for about $1.40. >> $1.40? >> $1.40 for cash costs, yes. >> to our viewers, they probably think, look, you hire neighbors, you bring them in. doesn't matter. one guy drills the same as the other. can you tell our viewers why your costs are lower than other guys? >> well, jim, we believe in profitable growth.
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too many of our peers are really focused merely on growth. we believe we have to make money through the business cycle, whatever the commodity prices are. we are a price take, we have no influence on commodity prices, whether it's natural gas or crude oil is, so we focus on cost. and we do a great job of focusing on costs. we're attracted to low-cost basins as well so we tend to be more developmental in nature, onshore and natural gas versus expiration in nature, crude water and oil expiration. so you see that at the pine area, and the second area we're developing in pennsylvania. both are very low costs with high margins, even at more modest gas prices. >> michael, you would not, i believe, be drilling in the marcellus shale in pennsylvania if you didn't think -- this is my own personal view -- that we're about to get a change in washington and this natural gas fuel will be favored more than just 62% of heating american homes. >> oh, i definitely agree with you. i think we're about to see a change where natural gas will be a favored fuel.
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it clearly has more benefits over some of the more carbon emitting hydrocarbons like coal and it's a natural bridge to help us move to wind and solar. >> now, you did lower your drilling budget and then raise. was that something you saw in marcellus that just said, listen, we can even at these prices do well? >> we think we can even do better in the marcellus than pinedale. it is an extraordinary. >> no. pine dale is the cheapest in the country. >> by andapinedale is fabulous e think marcellus' returns will equal or exceed that. part of that has to do with prom imty to better gas markets. >> right. can you explain the hub system to our people so they understand natural gas in colorado can be cheaper than natural gas somewhere else? >> it all has to do with transportation costs to get your gas to market. unfortunately, the rockies have been rich in supply and lacked takeaway capacity or pipeline capacity to get the gas to market. there's very little local demand in the rockies so all of the gas has to be exported or transported to the west coast or midwest northeast. the new rockies express
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pipeline, which has just come into being and will be finally finished early november, provides access for another 1.6 bs a day of gas out of the rockies to access higher-priced midwest, northeast markets. soon here in the next 18 to 24 months, we'll have additional pipeline out of the rockies, ruby pipeline projects, which will go the west coast. so probably by this time in 2011, rockies supply will have the most market diversity of any natural gas supply based in the u.s. >> what you're telling me is it wouldn't be so far afield if we had all of these pipelines all over the country to see a chain of 2,000 natural gas, gas stations, where all of the trucks doing interstate driving could fill up? >> i think that's very likely and very possible. >> how about this, today's "national post," canadian paper, natural gas may hit $1 in canada. what do we do if that happens? >> i don't think we worry about it if it happens in two or three months. you look at the forward curve, what happens after winter starts? i don't think anybody pays attention to what happens in the next 30 to 45 days. >> one last question. dow chemical. i have a $20 billion natural gas bill.
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i call michael watford and i saw, michael, i'm willing to pay $3.50 for the next ten years of natural gas. do you make that deal? >> no, i don't make that deep. i think it will be close to $6. the futures market for 2010-2011 says that. >> michael watford, you are really good at your job. thank you very much for coming on "mad money." >> thank you very much for inviting us. >> most consistent growth stock in the patch. i got that not from just me but investors business daily, which is how i first found out about ultra. michael watford is the deal. i want to buy that stock. i still want to buy natural gas. you heard why and now you stay with cramer. coming up -- a week-long competition just got bigger. cramer decides if this stock has what it takes to be crowned discount king. plus -- try to keep cramer as he takes the calls rapid fire in an all-new lightning round. and later, how do your stocks stack up in a mystified market? cramer makes sure your portfolio
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you know i'm hunting around for the discount king all week. the best, cheap retailer. not the one with the best stores. not necessarily even the best company. but the best stock, and that's an important difference as you will see tonight. even though the trade downplay may be starting to unwind as consumers feel wealthier, courtesy of the bottom in the housing market and, of course, the robust stock market since march, i still think there's opportunity in this space. especially since a lot of higher-end retailers and department stores have really run and the discounters have started to lag behind. all week i have been focused on this exercise in comparative stock picking.
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i like to call it mad max beyond thunderdome. five discounters enter, one discounter leaves. it's my effort to show you how to evaluate stocks like a professional. my goal is to make you a better investor by showing you how i used to compare hedge funds, how i pit household names you're all familiar with against each other to try to arrive at the stock with the best risk rewards. so far we looked at tjx, which i'm now calling the discount pawn, or maybe knight, as it deserves a more senior appleation with its city of good execution. going over the warehouse stores, cosco and bjs, where i think bjs can be maybe a contender for the discount crown. despite what i say, the discount stores don't matter. perhaps my personal love of shopping at cosco. the store samples i try to make a meal of. how do you think i got rich in the first place. i always fast before going to a cosco. today i want to come back with another retail name in the
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off price retail space. big lots! b-i-g for all of you home gamers. this hasn't been one of my favorite retail stocks but yesterday it reported a monster blowout. that's right. earnings per share coming in at 35 cents, 5 cents more than what the street was expecting. and it raised its guidance for 2009. you know what that is, that is the double play we're looking for and only apple and sales force.com have given us that combination in any meaningful way. you may not know these guys. they operate though out of 1,350 stores in 47 different states. many of them k highest concentration california, florida, texas and ohio. those first two especially are big beneficiaries of the recovery i'm seeing, especially the recovery in housing, which big lots has some exposure to. something we want to see after that fantastic new home sales number today. no more denying that housing bottom. about 30.4% of big lots' products is consumables.
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i'm sure you've had some of these fabulous cinnamon toasters. that's food, health, beauty and pet products. yeah, we've got all of that stuff, man. cranberry juice, good for your urinary track. another 15% is home products. try to be helpful. try to be helpful, for heaven's sake. home products with 15% is furniture. that's your housing exposure. it also gets 14% of sales from hard lines, l and appliances. 13% from seasonal and garden products, probably the stuff where other retailers were stocking last christmas and the last 13% is toys, jewelry and here's my friend kathy, the old caterpillar. big lots, like tjx, sells closeout merchandise. it buys brand name products from vendors who have too much inventory and are ready to fire-sale their goods, sell, sell, sell. although it does some direct
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purchasing, where big lots buys in bulk, a la bjs and cosco, with 20% of its merchandise coming directly from overseas vendors. i said tjx has to be worried earlier this week because its model gives it a sourcing problem in an environment where other retailers are flush with cash and lean inventories. they will have to pay much higher prices for the goods because the closeout sales are not there. everybody's inventory is too lean. i think that's where tjx is down. so what makes big lots different than tjx? why am i less worried about it having a sourcing problem the second half of the year? mainly it's because big lots was much more confident about the second half on its conference call that tjx has been. management sees major improvements in earnings and same-store sales. from the third quarter to the fourth quarter. while tjx had a much more negative outlook. the other difference tjx sells mo mostly apparel, while big lots has a much more diversified mix. on its conference call, big lots mentioned recently landing big new closeout deals as a reason
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they're positive about the second half. so they're clearly not in the same boat as tjx. how about the key metrics for big lots, same store sales, margins, we're comparing all of those. but management was more optimistic in the second half of the year, predicting same-store sales down to 2% to flat in the third quarter and slightly positive in the fourth quarter. that's the one we care about, but it is up against something easy to compare, the fourth quarter of last year. it same-store sales were down 3.2% last year. that could be easy to improve upon. inventories, here's some big news. big lots finished inventories down 4%, compared to last year at this time. that's fabulous. that's fabulous. you know why? no further discounting because they're lean and don't need to dump anything. the company also had gross margin. how much money it makes after sales, up 40%. that is a profitable discounter. tjx is much smaller, it's 25.5%. and that's probably going to come under pressure, i believe, because of sourcing problems. then why am i not just standing
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on the table saying you should be buying big lots? my big, main complaint about big lots, why i consider it the notorious b.i.g. lots has been purely anecdotal but it's still a powerful one for me. i had a bad experience at my big lots. one time i visited the big lots on route 22. it was incredibly disorganized, sloppy. this is not a company that scores very high on the danny meyer hospitality scale. remember, he's the restauranteur with his books setting the table, introduce us to the hospitality quotient. if that -- in that big department, big lots is a big zero. that said, as least big lots has acknowledged that its stores haven't been run well, and it's been rolling some new initiatives to make them more appealing places to shop. its food refresh program, which includes a new or refinished fixtures in half of its stores to emphasize cleanliness and better presentation for food
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offerings, it's now on track to be done by the end of this quarter. i don't know about you, but i prefer my food clean. hey, while i'm at it, i hate the cellophane bags and crackers and chips scattered around the register, obviously left there by patrons who decided not to buy them. and they're simply not restocked. get this, i also waited in the longest store line i have ever been in because i wanted to buy picture hooks for half price and keep them with my cosco resample style of living. thanks to lower advertising and real estate costs, big lots have been able to advertise more aggressively on television for the same amount of money. it's been able to open a lot of stores. it will open 50 this year, versus 45 it planned. i love that. big lots, huge beneficiaries of the demise of linens and things and circuit city, because it's cheaper to convert their former stores to big lots stores than it is to convert it to a former supermarket. how about the stock, how about the stock? will i name it to discount stock king? you'll have to wait until tomorrow. since the march 6th lows, big
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lots had a huge run. it's up 50%. normally that alone would disqualify it from the running. but wait a second, tjx is up 70% since then. so while i'm not happy that we missed as much of this big lot move, although dan fitzpatrick, our chartist from off the charts, did catch it. i can't boot the darn stock from the competition just because it's run a lot. and even though big lots' growth rate is just under 10% is in line with other retailers, home goods and warehouse companies, it trades at only 12.5 times expect 20d 10 earnings. two points below tjx and well below cosco, which trades at 18.7 times. 2010 earnings. cosco is lower than bjs. here's the bottom line about bic lots. even though b.i.g. lots sells cheap merchandise, a lot of its discretionary tied to housing, which is why it's in the running for discount king, and at the very least, it's discount bishop or discount rook. john in carolina. john? >> caller: hey, jim.
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big unc wilmington sea hawk, b, b, b, boo-yah! >> holy cow, man. unc rocks and your branch rocks and i'm loving it. >> caller: i was wonder what you thought about ruddic incorporated, rdk. they currently operate two subsidiaries, they operate harris peter, the grocery store chain and the textile company and i wanted to know if you think american holds the stock back and the xenl growth for the grocery store chain? >> john, you just answered the question yourself. every time i looked at this company, i decided it was a curious hodgepodge, a strange add mixture of companies that if they separated them out would be worth more. john, if you can find out whether they're going to separate, then you got a real winner. right now the pasties is not my cup of tee. even though i had a bad experience in my big lots, and i can be forgiving! i'm still keeping b.i.g., big lots, in the running for my discount king contest. stay with cramer!
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coming up -- the madness goes nationwide. >> a big, buffalo boo-yah! >> and a scorching winner in west texas. >> southern california, jim! >> as jim takes your calls from all across america. >> boo-yah! so you're from st. louis? >> big 110-degree boo-yah from phoenix, arizona. ed >> boo-yah from seattle. >> in an all-new quick fire lightning round. and later, whether the dow soars or hit the floor, jim helps you try to stay on steady ground with "am i diversified?" all coming up on "mad money." when this shoe store added aflac
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it is time.
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it is time for the lightning round on cramer's "mad money"! what's that all about, you ask? of course, that's rapid-fire calls. you say a stock and i tell whether you to buy, buy, buy, sell, sell, selling! i don't know the calls ahead of time. i'm completely in the dark. you hear this sound -- [ buzzer ] and then the lightning round is over. are you ready? skee-daddy! i'm going to chris in colorado. chris? >> caller: jim, a big rocky mountain b, b, b, b boo-yah to you! >> what's up? >> what do you think about cnk? cinemark holdings? >> i don't like the cinema business. i don't like it. i remember when the movie businesses, they tend to load up debt and then they tend to get crushed. i think that business is a sell, sell, sell! although, when i went to see that inglorious movie, i won't say the last name, i did get a deal. first time ever, $4 for soda and popcorn. i think prices are coming down. or maybe i just got a bargain. carol in michigan. carol? >> caller: hi, jim!
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>> carol. >> caller: love your show. >> thank you. thank you very much for saying that. >> caller: i bought caterpillar specifically for its dividends. and since i bought it, it's up over 20%. so do i hold for the dividend or do i sell for the profit? >> okay, you bought it very well. you bought it when it was an accidentally high yielder. i personally think that caterpillar world class manufacturer, if you can handle -- this is up to you -- if you can handle a dip down back to 40, if you can handle a 7-point dip, then i think you hold it. buy, buy, buy! but if you can't, sell, sell, sell! fair enough. i put it in your hands. let's go to harris in texas. harris! >> caller: hey, jim, big b boo-yah from dallas for you. >> oh, man. we got to get down to dallas. >> caller: you got to. >> i may have to draft one of your guys in my fantasy league. >> we got a suite at texas stadium. come join us. >> i got a jumbotron the size of that one in my loving room. go ahead. >> caller: i got a question for you about kirkland. after their earnings release
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today, do you think kirkland has positioned themselves well for the holiday season? >> i have to put kirkland in the scale of a tjx. one of the things we're doing the discount -- discount bakeoff this week in kirkland should have been included. it happens to be too small. it's only about $250 million but they put up some good numbers and i think it goes higher. how about thomas in colorado. thomas? >> caller: hey, jim. a big michigan state spartan boo-yah to ya! >> now you got me all confused. i figured you would have given my a buff boo-yah. instead a spartan boo-yah. i will take it where i can get it. what's on your mind? >> caller: i currently have sun micro-java soon to become oracle. orcl. should i keep or hold? >> i am a huge believer. in larry ellison. i am a huge believer that merger will work out well as all of the other oracle mergers do. i would stick with oracle. you did well. buy, buy, buy! let's go to larry. >> caller: good afternoon,
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skee-daddy. boo-yah from marietta, georgia. >> think, chief. what are you doing? >> caller: hey, my wife and i watch every day and we have learned so tremendously much from you and your book. >> oh, you're a very nice man. of course, now, by the way, in paperback. but -- >> caller: i'm humbled. i actually am. would you please give me some advice on a stock that i just took a lot of profit off the top on, that we made a lot of money on, cn hrh global. >> cnh global, my friend, should be sold. the agriculture business has had a big run. it comes under my categories, as i say at the beginning of the show, some stocks should be left go. i don't like what deere's doing either. i'm a sell sell sell. you made the right move taking the profit. let's take one more. let's get a volunteer here. let's go to terry in tennessee. terry? >> caller: yes, sir, mr. cramer. i want to give you a big utb, b, b, b boo-yah. >> uk boo-yah? >> caller: ut. >> i started thinking of getting -- we had this guy in colorado
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and started thinking i had to get my randz mcnally out instead of map quest. >> caller: my question is about the ticker t. buy or sell? >> listen to me and listen good, terry. this stock is finally on the move. it's been to quote my favorite stock analysts, mo, larry and curly, step by step, inch by step, slowly breaking out of the 25 level, going to 30. i also think verizon's going from now 30, 32 to 35. i think at&t's a winner. i want you to stay with it. i can't believe you can get it in a 6% yield. i think the landline business can come back. i love the business apple. i love the iphone. i love you! i love the end of the lightning round! >> the "lightning round" is sponsored by td ameritrade. the way the stock market's been acting lately you may wonder if you've been doing the right thing. is the advice you've been getting helping or hurting?
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are the fees you're paying really worth it? td ameritrade's fees are fair and straight-forward. their research is independent and unbiased. their investment consultants are knowledgeable and there when you need them. so why not talk to one? announcer: call today to schedule a free investment check-up, or visit a td ameritrade branch. ♪ yes, you're lovely... ♪ what do you think? hey, why don't we use our points
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from chase sapphire and take a break? we can't. sure, we can. the points don't expire... ♪ there is nothing for me... ♪ there's no travel restrictions... we could leave tomorrow. we can't use them for a vacation. you can use the points for just about anything. i know... ♪ the way you look tonight ♪ chase what matters. get your new chase sapphire card at chase.com/sapphire. [ water ] hey, it's me -- water. did you know that when you filter me from your tap i'm pretty much the same as i am in a plastic bottle? well, that's not entirely true.
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see, at home, i'm 10 times cheaper. other than that, though, i'm pretty similar. oh, wait, there's no expiration date. and i don't have to get shipped all around the country. but other than the costing, the expiring thing, and the shipping thing, we're pretty much the same. pur. good, clean water. welcome back to the only time of the week that i sit down on "mad money." when i tell you i think you should own a stock, doesn't mean you should throw all of your eggs into one basket. even if you're almost positive
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it will go up, oh, no, my friend, uh-uh, not on my watch. diversification is the only free lunch ♪ hallelujah and this is why we're playing, am i diversified. you tell me your top three portfolios and i tell you maybe you need to mix it up. maybe you need to throw something back. bring something new. let's start with ken. ken in connecticut is our first caller. ken, what do you have for me? >> caller: jim, how are you doing? a big boo-yah from connecticut. how are you doing tonight? >> i will tell you, i think connecticut has now surpassed ohio and florida as the land of fabulous callers. >> caller: i appreciate that. >> no problem. >> caller: let me know if i'm diversified. i have goldman sachs, ebay, dell computer, halliburton and gilead sciences. >> all right. very interesting. i own a lot of these stocks
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personal for my charitable trust. gig yack is a viable company, terrific. halliburton is an expensive drilling service company. and goldman sachs, the best bank in the world. i suggest people read the time article about them to learn the truth. show, ken is an trouble. regard ebay as two techs, i would absolutely throw out dell and given that senator feinstein said it's unlikely we see any change for health care, put it this way, i need you out of del, you can go buy tech strong.
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>> let's go to lynn. >> a boo-yah to you. you have horse sense. >> tell me if i am diversified. bp, british petroleum, ed, con ed, hd, home depot, mc, mcdonald's, the always favorite t, at&t. aim diversified, jim? >> when we talk about portfolios, stocks wit good growth and with withstand good times. lynn has it. a great company yield is very consist. not growing that much but home
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depot we have the highest yielding high quality retailer, the absolute right place to be with the housing bottom. bp, the highest major oil company, i put out a note, i made it clear the restructuring is on, moved a lot of it spe spending. remember just got a rate increase e good yielder with no cap and trade problems. and stephenson, always welcome on the show. we have phone company, electric utility, oil company and food purv purveyor. that's what i want to see! good yielding portfolio, very safe and very smart. i always say it, our viewers smartest on earth. to bernie in connecticut. >> welcome to connecticut. boo-yah! >> nutmeg stuttering boo-yah
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back to you. could be western. >> caller: thanks to you, jim, my portfolio is up 20% in the last few weeks. >> you did the work. >> i want know if i am diversified. m for may circumstance atvi, acksivision, c, city, ba, bank of america and csm, i may get back in. >> did you mean bank of america or beauing? >> boeing. we're all set. take look at this. interinterinter. welcome to the only time of the week i sit down for "mad money." when i tell you i think you
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should own a stock, doesn't mean you should throw all your eggs . database gaming and banking, yes, connecticut rocks! our players rock, "mad money" rocks, back after the break. i'm racing cross country in this small sidecar, but i've still got room for the internet. with my new netbook from at&t. with its built-in 3g network, it's fast and small, so it goes places other laptops can't.
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i like to say there's always a bull market somewhere and promise to find it for you on
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"mad money." i'm jim crime e see you tomorrow. hi, may i help you? we're shopping for car insurance, and our friends said we should start here. good friends -- we compare our progressive direct rates, apples to apples, against other top companies, to help you get the best price. how do you do that? with a touch of this button. can i try that?

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